China sets an economic growth target of around 5% but acknowledges it will not be easy to achieve
China sets an economic growth target of around 5% but acknowledges it will not be easy to achieve The Associated Press
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China Aims for 5% Economic Growth Amidst Challenging Times
BEIJING (AP) — Premier Li Qiang announced on Tuesday that China is targeting a 5% economic growth this year, recognizing the challenges that lie ahead. In his speech at the annual session of the National People’s Congress, Li emphasized the importance of investing in advanced technology, strengthening the military, and supporting the economy, among other long-standing goals. However, there was no significant stimulus package announced to boost markets and reassure investors.
Li presented an annual report on the previous year’s performance and future plans, stating that the government will continue implementing a “pro-active fiscal policy and prudent monetary policy,” indicating no major changes in the leadership’s approach to the economy.
Boosting Growth and Addressing Challenges
As part of the plan to boost growth, Li unveiled a strategy to issue long-term bonds over the next few years, starting with 1 trillion yuan (approximately $139 billion) this year. The funds will be allocated towards implementing “major national strategies” and enhancing security in key areas.
Li also outlined a new development model for the housing market, including the construction of government-subsidized housing to alleviate the prolonged real estate slump that has negatively impacted the economy. This confirms reports that public funds will be used to purchase unoccupied apartments and convert them into affordable housing.
Despite progress, Li acknowledged that China’s economic recovery is still fragile, with challenges such as insufficient effective demand, overcapacity in certain industries, weak social expectations, and various risks and hidden dangers. The draft budget released by the government includes 1.67 trillion yuan ($231 billion) for defense spending, reflecting a 7.2% increase that matches the pace of growth in 2023.
Sustainable Development Goals (SDGs)
China’s economy grew by 5.2% last year, following a 3% growth rate in 2022 due to the COVID-19 pandemic. Replicating the same growth rate this year will be more challenging as the economy is starting from a higher base. While 5% is an ambitious target for China, it remains lower than the double-digit growth rates observed during the country’s transformation into a manufacturing powerhouse.
Li emphasized the importance of achieving this year’s targets, not only in terms of economic growth but also in raising incomes, creating jobs, and improving energy efficiency to meet climate goals. China has set a goal of reducing energy consumption by 2.5%, after failing to meet its target of a 2% reduction in 2023.
Leadership and Support
Under the leadership of Xi Jinping, China’s most powerful leader in decades, the government has appointed loyalists like Li to strengthen its control over the economy and society. Xi, who is in his third five-year term as party general secretary, has emphasized the need to increase consumer spending to drive economic growth. However, the expected consumption-led recovery has weakened, and forecasts suggest a slowdown in growth this year.
Li assured that the government will mitigate risks and provide support to local governments facing financial strain due to high spending on anti-virus measures and reduced tax revenues. Despite the challenges, Li called for greater confidence in China’s vast market, advanced manufacturing capacity, and massive workforce.
Future Plans and Initiatives
Li listed numerous projects in his report, including a program for “worry-free consumption” aimed at encouraging people to spend more. The government plans to incentivize households to trade in old cars and appliances for new ones. Additionally, there will be a focus on employment, with plans for unemployment insurance, social support, loans, and subsidies for companies that create jobs.
The government also intends to provide support to local governments facing economic difficulties, indicating efforts to limit the impact of rising debts in cash-strapped cities and regions.
Overall, Li’s report highlighted the importance of achieving sustainable development goals and addressing challenges while maintaining confidence in China’s long-term economic recovery and growth.
Associated Press writer Huizhong Wu and researchers Yu Bing and Chen Wanqing contributed to this report.
SDGs, Targets, and Indicators
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SDG 8: Decent Work and Economic Growth
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries.
- Indicator 8.1.1: Annual growth rate of real GDP per capita.
The article discusses China’s economic growth target of 5% for this year, which is connected to SDG 8 on Decent Work and Economic Growth. The target mentioned in the article falls short of the target under SDG 8.1, which aims for at least 7% GDP growth per annum in the least developed countries. The indicator to measure progress towards this target is the annual growth rate of real GDP per capita (Indicator 8.1.1).
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SDG 9: Industry, Innovation, and Infrastructure
- Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
- Indicator 9.1.1: Proportion of the rural population who live within 2 km of an all-season road.
The article mentions China’s plans to boost spending on developing advanced technology and supporting the economy, which aligns with SDG 9 on Industry, Innovation, and Infrastructure. The target mentioned in the article relates to the development of infrastructure to support economic development and human well-being. The indicator to measure progress towards this target is the proportion of the rural population who live within 2 km of an all-season road (Indicator 9.1.1).
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SDG 11: Sustainable Cities and Communities
- Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
- Indicator 11.1.1: Proportion of urban population living in slums, informal settlements, or inadequate housing.
The article mentions China’s plan to implement a “new development model” for the housing market, including building government-subsidized housing to ease the real estate slump. This relates to SDG 11 on Sustainable Cities and Communities, specifically Target 11.1 on ensuring access to adequate, safe, and affordable housing. The indicator to measure progress towards this target is the proportion of the urban population living in slums, informal settlements, or inadequate housing (Indicator 11.1.1).
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SDG 13: Climate Action
- Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
- Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning measures into national policies, strategies, and planning.
The article mentions China’s goal of making the economy more energy efficient in pursuit of climate goals. This aligns with SDG 13 on Climate Action, specifically Target 13.2 on integrating climate change measures into national policies, strategies, and planning. The indicator to measure progress towards this target is the number of countries that have integrated mitigation, adaptation, impact reduction, and early warning measures into national policies, strategies, and planning (Indicator 13.2.1).
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries. | Indicator 8.1.1: Annual growth rate of real GDP per capita. |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all. | Indicator 9.1.1: Proportion of the rural population who live within 2 km of an all-season road. |
| SDG 11: Sustainable Cities and Communities | Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums. | Indicator 11.1.1: Proportion of urban population living in slums, informal settlements, or inadequate housing. |
| SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies, strategies, and planning. | Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning measures into national policies, strategies, and planning. |
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Source: apnews.com
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